Reference is made to the announcements on 19 August 2016, 7 October 2016, 4 August 2017 and 13 November 2017 in relation to the arbitration initiated by a wholly-owned subsidiary of Zelan Berhad (“Company”), Zelan Holdings (M) Sdn Bhd (“ZHSB”) against Meena Holdings LLC (“MH”) as the employer pursuant to the Building Contract for Procurement, Construction and Completion of Package 2 Main Construction Package of Meena Plaza Mixed Use Development Project, Abu Dhabi, United Arab Emirates between MH and ZHSB (“Contract”).

The Company would like to announce that ZHSB has in the evening of 29 July 2019, received a decision from the International Court of Arbitration, International Chamber of Commerce via Final Award dated 25 July 2019 (“Arbitration Award”) declaring inter-alia, as follows: 

i) ZHSB’s termination of Contract is valid.

ii) The contract of Muqawala made between the parties has terminated for the purpose of Article 892 of the UAE Civil Code of Contract.

iii) MH’s deduction of sums in respect of obsolete cladding & thermal insulation material, conveying materials and MEP material were wrongful.

iv) MH’s reversal of Interim Payment Certificate (IPC) no.51 by issuing IPC 51R is invalid and wrongfully issued.

v) The NCRs no.98,119,121,122, 123 (as qualified) and 97 (to the extent the remedial works do not relate to Basement  B1 slabs) were invalid and/or wrongfully issued by MH.

vi) ZHSB is due an extension of time to 1 October 2015 for basement rectification works with no prolongation cost.

Accordingly, the Arbitral Tribunal of the International Court of Arbitration, International Chamber of Commerce has awarded ZHSB the following:

a) The sum of AED256,141,666.23 which sum includes interest up to 1 June 2019;

b) Pre-award interest from 1 June 2019 until 25 July 2019 in the sum of AED52,963.71;

c) Parties’ costs in the sum of AED8,403,936.69;

d) ICC Costs of Arbitration in the sum of US$585,000; and

e) Post-Award interest on items a), c) and d) at the rate of 9% per annum after the date of Arbitration Award until full payment by MH.

The Company is in the process of seeking advice from its solicitors on the enforcement of the Arbitration Award with the purpose of recovering the awarded sums.

This Announcement is dated 31 July 2019.